Bank of America Securities: Downgraded the rating of Hisense Home Appliances (00921) to “neutral” and reduced the target price to HK$24.9

The Zhitong Finance App learned that Bank of America Securities released a research report stating that Hisense Home Appliances (00921)'s revenue for the second quarter fell short of expectations, downgraded its rating from “buy” to “neutral”, and the target price was lowered from HK$30.4 to HK$24.9.

According to the report, the main drag factors in the second quarter may continue until the second half of the year and affect revenue growth, but the impact may be less than that of the second quarter, because some factors are one-off, such as early shipment of export orders and inventory removal through the 2C channel for central air conditioning. However, other factors will still put pressure on growth prospects, such as export normalization and uncertainty about the growth of central air conditioning. Furthermore, the domestic revenue base has been high since September, which may cause additional pressure. The bank expects revenue and after-tax profit growth rates for the second half of the year to be 2%/5%, respectively, compared to 1%/2% in the first half of the year.